instigating their purchase intention. The analysis of data gave significant results that are more in favour of Hypothesis1

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1 7 CONCLUSION This chapter articulates the main outcomes of the research project, examining the extent to which the objectives are met and contribution to the existing literature on celebrity endorsements. Managerial and theoretical implications of the research are outlined. Finally the limitation of the current study is acknowledged and directions for the further research are suggested. Celebrity endorsements has changed the way advertising used to be few decades ago. It is been accepted to be a ubiquitous feature of modern day marketing (McCracken 1989). Celebrity endorsements business has become a multi-million dollar industry in India (Malhotra 2005). As a result, a greater understanding of consumers reactions towards celebrity endorsements can help the marketers to use it more effectively. This research project explored the current state of Indian consumers perception about celebrity endorsements. Empirically identified and tested the celebrity attributes specific to influence purchase intention and finally examined the impact of celebrity endorsements on purchase intention of consumers. In accordance with the study objectives, the following conclusions are drawn. First Hypothesis was to determine as to what attracts consumers more: celebrity endorsed advertisement or non-celebrity advertisement. The results from the descriptive frequency analysis of the data shows that 83.6% of respondents find celebrity endorsements more attractive than non-celebrity endorsements. Majority of the respondents (87.5%) observed that celebrity endorsed advertisments increase the recognition and recall rate for a product being endorsed. And finally the respondents were asked to choose what most influences their intention to purchase among celebrity and non-celebrity endorsements. 72.1% of the respondents state that they find celebrity endorsements more influential at 148

2 instigating their purchase intention. The analysis of data gave significant results that are more in favour of Hypothesis1 The Second hypothesis was to determine the positive relationship of different celebrity attributes and purchase intention of the consumers. Although some attributes are very effective at influencing purchase intention of consumers some are relatively low or moderate. For instance, familiarity of the celebrity has the highest impact on purchase intention followed by expertise trustworthiness and likeability. The least important attributes to have impact are product-celebrity match-up. Ha: Familiarity has a positive impact on the purchase intention of the consumer. Familiarity of the celebrity endorser positively affects the consumers intention to purchase products or services endorsed by him Result of the study proves that familiarity of the celebrity endorser positively influences the purchase intention of the consumers. The result states that the more familiar the celebrity, more are the chances that product endorsed by him will be purchased by the consumers. Hb: Likability also has a positive impact on the purchase intention of the consumer Likeability of the celebrity endorser positively affects the consumers intention to purchase products or services endorsed by him The empirical test results of the study have found positive relationship between likeability and purchase intention of the consumer 149

3 Hc: Trustworthiness also influences the purchase decision of the consumer Trustworthiness of the celebrity endorser positively affects the consumers intention to purchase products or services endorsed by him The result from the study proves that trustworthiness of the celebrity positively influences the purchase intention of the consumers Hd: Expertise also has a impact on the purchase intention of the consumer Expertise of the celebrity endorser positively affects the consumers intention to purchase products or services endorsed by him Result of the study proves that expertise of the celebrity endorser positively influences the purchase intention of the consumers. The result states that the more expert the celebrity is in the category of product being endorsed by him, it is more likely that endorsed product will be purchased by the consumers. He: Product Match up influence the purchase decision The Product celebrity match-up of attributes positively affects the consumers intention to purchase products or services endorsed by him According to Till and Busler (1998) the existence of perceived 'fit' between the endorsing celebrity and the brand may influence the consumers intention to purchase. The empirical test results of the study state positive but low relationship between celebrity product match-up and purchase intention of the consumer 150

4 The research project examined and explored the current state of consumers perception about celebrity endorsements. Research outcomes reveal extremely high degree of familiarity across all age groups. Results reveal that people find celebrity endorsements more attractive, particularly young people and teenagers. Further, on the basis of attractiveness people find actors and actresses from bollywood and films more influential as endorsers. Results reveal that using a celebrity in an advertisement increases the recognition and recall rate of the endorsed product. Overall the people believe that celebrity endorsements are more attractive, and effective at influencing their purchase decision. Interestingly, people know and agree that celebrities don t really use the products endorsed by them. Even though, celebrity endorsements have a very positive impact on consumer s perceptions and attitudes towards the endorsed product. Celebrity endorsement really work because the qualities associated with the endorser are associated with the brand and the brand therefore remains at the top of the consumer's mind. However one needs to realize that the impact of an endorser cannot be sustainable in all product categories and in all the stages of brand life cycles. It really depends upon the type of product. If it is a 'functional brand', then the product itself is the hero. Here any celebrity association with the brand without corresponding performance of the product will not be sustainable. While incase of 'image brands', like the categories of soaps, soft drinks, cigarettes etc., where it is difficult to distinguish between the products, celebrity endorsements help to distinguish between the brands at an emotional level. People would be more likely to buy a brand that was endorsed by their favorite celebrity. Celebrities ensure attention of the target group by breaking the clutter of advertisements and making the advertisement and the brand more noticeable. A celebrity's preference for a brand gives out a persuasive message and hence, because the celebrity is benefiting from the brand, the consumer will also benefit. There is a demographic and psychographic connection between the stars and their fans. Demographic connection establishes that different stars appeal differently to various demographic segments i.e. 151

5 age, gender, class, geography etc., while psychographic connection establishes that stars are loved and adored by their fans. Some stars have a universal appeal and therefore prove to be a good bet to generate interest among the masses. Another invaluable benefit from celebrity endorsements is the public relation opportunities. Whether Celebrity endorsement has a positive or a negative impact on the brand is a debate that is open to interpretation. But till the time the corporate world continues to foot fancy bills of celebrity endorsers and till consumers continue to be in awe of the stars, the party is not likely to break up. Celebrity endorsements will be more effective when using a celebrity with a high fit, congruence, or belongingness with the endorsed brand. Celebrity endorsers can be used to effectively reinforce and/or create an image for a product or service. Test potential brand/celebrity combinations to ensure that the impression and image of the celebrity is positive for the target audience. Celebrity endorsements will be more effective for less familiar brands. Celebrity endorsers will be more effective for brands for which consumers have limited knowledge/facts. Celebrity endorsers will be more effective when integrated across the elements of the marketing mix. Caution in choice of celebrity endorser is warranted given the potential risk of tarnishing the brand s image. It is expected that, over time, the combination of managerial experience, empirical research, and theoretical development will continue to strengthen advertisers ability to use celebrity endorsers more effectively. Thirdly and finally, empirical test of relationship between celebrity endorsements and purchase intention satisfied the final objective of this research project. It was empirically tested and found that celebrity endorsers positively affect the purchase intentions of the consumers as compared to non-celebrity endorsers. It was found out that people are more likely to buy, already buy and are happy with the purchases done under the influence of celebrities. Regarding negative publicity of the celebrity not many people 152

6 think about it or are still unsure. The fact depicts that they actually follow their celebrities regardless of negative publicity while some are slightly considered about it. Overall, the results proved the effectiveness of celebrities as endorsers. 153

7 7.1 Implications Celebrities should be used for endorsing a products because they ensure attention of the target group by breaking the clutter of advertisements and making the advertisement and the brand more noticeable. Celebrity endorsement will be more effective when used consistently over time to increase the strength of the link between the celebrity and endorsed brand. Familiarity of the celebrity endorser positively influences the purchase intention of the consumers. The result states that there is high influence of familiarity on the purchase intention of the consumer Likability of the celebrity endorser positively influences the purchase intention of the consumers. The result states that there is moderate influence of likability on the purchase intention of the consumer Trustworthiness of the celebrity endorser positively influences the purchase intention of the consumers. The result states that there is moderate influence of trustworthiness on the purchase intention of the consumer Expertise of the celebrity endorser positively influences the purchase intention of the consumers. The result states that there is moderate influence of expertise on the purchase intention of the consumer Match up also has a positive influence on the purchase intention of the consumer. Though the relationship is positive but the influence is low. When selecting a celebrity, companies must choose a celebrity who is not already strongly associated with another product in the same category. Celebrity endorser can be used to effectively reinforce and/or create an image for the product. Consumer under the influence of celebrity endorsement is more likely to buy, already buy and are happy with the purchase decision. 154

8 7.2 Theoretical Implications The major contribution of the research is that this is the first attempt to analyse and evaluate the impact of celebrity endorsements on purchase intentions of the consumers. This research developed a survey instrument based on the critical analysis of literature which was further tested to establish the validity and reliability of the constructs. The outcomes of the research added significant value to the existing literature by testing each of the attribute particularly in order to examine its impact on purchase intention. The theoretical model and the survey instrument of the study can be further used for conducting a research on broader scale. 7.3 Managerial Implications From managerial implications perspective, the research outcomes bring practically important results for marketers to consider while choosing a celebrity for an advertisement. Firstly, the regression coefficient analysis demonstrates the extent of each attributes impact on consumers purchase intention. Marketers can choose celebrities according to the important attributes required to influence a set of population. Moreover, the ability to predict purchase intention on the basis of results obtained through regression analysis will help the marketers to choose the perfect celebrity and to the class of product endorsed. Additionally, marketers should bound celebrities to use the products endorsed by them since majority of people believe that celebrities don t use the products they endorse. This will increase the credibility of celebrities and product among the consumers. 155

9 7.4 Limitations of the study Every research has certain limitations therefore it is necessary to acknowledge them before moving on to generalisations of findings. The following are the few constraints faced by the author while conducting this study. Firstly, the sample size is relatively small to represent the larger population of India Hence the results of this study are not sufficient enough to make concrete recommendations. Another limitation to the research is that majority of the respondents were young consumers under the age of The author didn t get any samples from the people above the age of 60 (senior citizens) who may have a different opinion regarding celebrity endorsements. Moreover, large number respondents belonged to or represented urban part of the population. Hence the rural sector, the major part of Indian population was left unobserved. Therefore the results may show difference if the study is conducted on a larger scale. Therefore the results from this research may not be used to sample India as a whole country. Secondly, the author feels that limited time and resources may affect the methodology of the research. The author considered and examined the factors/attributes from the earlier literature on celebrity endorsements. However additional research approaches qualitative study (focus groups) could have benefited this research even more. In other words it may lead to the determination of other relevant factors that might affect the purchase intention of the consumers. Moreover, the author feels that time was another big concern for the research. For a relevant successful research, 3 month time proved to be less in order to collect and analyse the data to a much deeper level. 156

10 Thirdly, even though the quantitative method to the approach has provided the most appropriate results for achieving the research objectives. It may also affect the outcomes of the research. The author used online questionnaire method in order to collect the data from the respondents. This method is not considered to very reliable because there is no face to face interaction with the respondent and therefore the respondents may manipulate with the data in terms of age, gender etc. On this account, the generalisations made on outcomes of the research are reasonable. Moreover, the elimination of above said limitations might reveal new insights in the area of celebrity endorsements. 157

11 7.5 Further Research The author has come across many interesting topics while conducting this research. In fact, some of the results from the current research generated important questions to be explored. As mentioned in the conclusion as well, consumers tend to think and act differently because when asked to rate the attributes independently the consumers came up with different answers. That is why the author has not claimed the results to be accurate. Research on the psychological and practical aspects of consumer buying behaviour can provide marketers with deeper understanding of the topic. Another important aspect to be explored can be how negative publicity can affect the purchase intention of consumer with reference to low and high involvement product and services. Negative publicity of the celebrity associated with the product can destroy the brand and it may take lot of time to recover the same image. Moreover, how easily people can accept a celebrity with a negative publicity to be a brand endorser is also of special interest. Another major area to explore is demographical area. Attitudes and perceptions of people differ on various different basis for instance age, gender, country, income level etc. From the marketer point of view it is important to understand that consumers are governed by their culture and values. Moreover, the limitations highlighted in the earlier section provide a broad platform for future research. 158

12 7.6 Application of research on real life case CELEBRITY: DHONI The young, handsome, self controlled, composed, autonomous cricket captain of Indianyoung Brigade is one of the most famous images in Indian market. In India cricket is religionand cricketers are placed among the33 crore gods of Indians and obviously the cricketcaptain is the king of Gods. So Dhoni has his appeal to Indians in general. Dhoni is a brandin himself and a attractive choice for the marketers as a brand endorser.dhoni has been successfully used indifferent advertisement as a brand ambassador.few of the brands that Dhoni is endorsed are, the famous Youngastan advertisement of Pepsi,Rebook s ad of Your Move and funky ad of Lays with Saif Ali Khan. Case I 1. PEPSI: YOUNGISTAN MERI JAN Pepsi has always tried to tap the young segment of India through their promotions. Beginningfrom the famous Ahaa series of ads to the Yah Dil Mange More to today s YoungistanMeri Jann, Pepsi has always made ads to attract the youth. They have always chosen the young stars, may not be established, as a face of young India. So the main reason of using Dhoni is same in case of the latest Youngistan Meri Jann ads. BRAND PERSONALITY: The brand is vibrant, energetic. It doesn t want to be looser. Pepsi is a intelligent brand which attach itself with fun and enjoyment. It also shows its daring attitude, mischievous behavior and outgoing nature. There is nothing opaque about the product and brand. 159

13 ENDORCER S PERSONALITY Dhoni is a youth with daring personality. He is intelligent yet humble and full of life. He is the leader of young team, fun loving young gentleman with transparent character. Now, Pepsi has chosen Dhoni as they think.. Celebrity Familiarity The person has achieved one post which is called next to president in India. Young generation of India love Dhoni, warship the man, Salute his virtue and get thrilled to experience his presence. Celebrity- Likeability: As a sportsman he possesses an athlete type of physic. But in addition to that he is manly looking and with a macho image and a deadly smile, which make him more attractive and appealing. Celebrity - Trustworthiness: The value associated with Dhoni is very high. Even the parents wants their offspringto be as prudent, as smart, as performer as Dhoni. Dhoni s attitude, his transparency, maturity acted as a magnet which attract not only the youth but also the older generation. So Dhoni s presence in an advertisement creates a positive vive for the product in the mind of consumer which force them to think about the endorsed product. Celebrity - Expertise Celebrity is being judged that whether he has the right to appear in the advertisement and indirectly advice the consumers what to do and what not to. Dhoni is captain of Indian 160

14 cricket team and not only that, he has proven his capability of performing under immense pressure several times which is obviously created creditworthiness. Celebrity s Product Match Up As mentioned earlier, the virtue of Dhoni matches with the embedded traits of the softdrink. Either of the personalities, be it Dhoni s or be it Pepsi s, joins as twoconsecutive part of a jigsaw puzzle. So Dhoni is a perfect match for Pepsi s brandimage Hence in Case 1 all the five attributes have a positive relationship with the brand. Therefore the Pepsi campaign endorsing Dhoni was a huge success Case II REEBOK: YOUR MOVE Reebok is the most visible and remarkable sports brand of all time. it makes innovative products which are making a lot of difference to consumers and athletes worldwide. As allthe persons related to sports are its target market, reebok has been using different sport celebrities for its promotion. DHONI s YOUR MOVE is a famous advertisement of reebok. BRAND PERSONALITY: The brand is related to sport wear. Reebok attach itself with an active & athletic image An sport person is uncomplete without Reebok s products. ENDORCER S PERSONALITY 161

15 Dhoni is a young sport personality. He has a fit & healthy body as well as attitude. He is the leader of Indian cricket team. He has achieved a remarkable position in cricket in a young age Now, Reebok chose Dhoni for this advertisement for following reasons.. Celebrity - Familiarity: In India, cricket is most famous sport and it is played and watched by a big portion of whole population of india. As cricketers comes just after god for Indians, so it can be easily asses how much an Indian cricket team captain should be popular. Celebrity Likeability The target market of Reebok is sport persons. Its product s price are also high because of high quality. As Dhoni is a benchmark for new entrants in sports, so he totallymatch to the audience s dreams. They will supposed to buy reebok products becausethey want to reach to the level of Dhoni. And according to him, it is difficult withoutsport products of as much quality as Reebok have. Celebrity- Trustworthiness The value associated with Dhoni is very high. Because Dhoni s image is of a big sportcelebrity as well as youngest Indian cricket team s captain. If audience thinks Reebok as Doni is, then it shows that Reebok has as much quality as Dhoni has. Dhoni s leading capacity reflects Reebok leading behavior in quality and standards. Celebrity Match up As Dhoni is the captain of Indian cricket team, he leads the cricket society in indiathese days. Reebok needed a sport personality who has a remarkable position in sportsworld as 162

16 well as different image than predecessors. So it completely match to fulfillthe need of promotion of a brand having speciality in sport products. Celebrity - Expertise: As a sportsman he possesses an athlete type of physic. But in addition to that he is manly looking and with a macho image and a deadly smile, which make him more attractive and appealing. From the Above analysis we see that the Brand personality matches the image of Dhoni. So, people can easily relate the brand with Dhoni as he is a sport person and Reebok can easily get attached with it. H1 Example: Success of the Khusboo Gujarat Ki television campaign that sees megastar Amitabh Bachchan endorsing the vibrant state, the Gujarat tourism. With Slice going all 'aamsutra' with Katrina Kaif tremendously increases the recall and recognition value of the brand. Ranbaxy Product Revital endorsed by Salman khan has a great recall value. Loreal Brand ambassador ASHWARYA RAI creates a desire to look beautiful like her by using the loreal products which instigate the consumer to buy the product. Glaxosmithkline product boost is the first Health food drink to have used celebrity endorsements to convey its energy proposition and has thereby successfully endorsed by India s most famous cricket stars, particularly those with humungous following among children. 163

17 Familarity Example: Amitabh Bachchan is an apt example in this regard, he is not only a well-known face but a dignified personality and thus his association with Dabur Chawanprash is such a success. Abhishek Bachchan has worked wonders for the brand Idea. A recent survey showed that Idea was one of the first four most talked of brands in its category all thanks to this one man s influence on its brand s image and the widespread acceptance by the consumers. Likability Example: The undisputed King Khan of Bollywood and Don of celeb endorsements has lot of big brands under his endorsement bandwagon. From luxury watch brand Tag Heuer to Lux innerwear brand, he is the brand ambassador of many big and small brands alike. Moreover he has maintained an image of being India s first celeb metrosexual and the first Indian male to do a Lux beauty soap commercial. The ad was the talk of the town and further reinforced by him later promoting Emami Fair and Handsome, the first Indian fairness cream for men Ranbir Kapoor s famous Youngistan campaign for Pepsi Deepika Padukone s campaign for Nescafe. Trustworthiness Example: Aishwarya Rai Bachchan Endorses Stem Cell Banking. Aishwarya Rai Bachchan is a LifeCell parent too. She truly believes that stem cell banking is a sensible investment that expectant parents can make for their children and has personally chosen LifeCell. In 2013, she joined hands with LifeCell to spread the importance of stem cell banking to more and more expectant parents. 164

18 Mankind has roped in Shilpa Shetty to endorse their pregnancy test kit PregaNews. It is the first time any pregnancy test kits endorsed by a Bollywood celebrity. With Shilpa Shetty s pregnancy news creating a lot of interest, the company aim is to cash upon the popularity. Also the TVC portrays the modern woman who plays various roles in her life but the most special is the one when she becomes a mother. Expertise example: Reebok Bat endorsed by Indian cricket team captain MS dhoni Match up Example: Anuksha Sharma endorsing Scooty Pep Kareena Kapoor endorsing Vivel Soap. 165